Ethical Issues in Contemporary HR Management - Case Study Example

Ethical Issues in Contemporary Strategic Human Resource Management Name Institution Tutor Date Introduction Contemporary Strategic Human Resource Management (SHRM) is often concerned with commitment, flexibility, performance and culture (Truss et al. 2012). Its emphasis on high levels of performance however generates ethical questions, especially relating to treatment of employees (Crane & Matten 2010). This is especially in the presence of other unique characteristics for instance an ageing workforce and increased unionization, both of which require strategic adjustments to cope (Paauwe et al. 2013). Ageism and unionization pose ethical challenges to SHRM, and these are understandable through evaluation of relevant ethical theories. This paper discusses the ethical issues surrounding unionization and ageing with reference to two reported events, and offers suggestions of how such situations may be handled basing on utilitarian, Kantian deontology, Rights and Rawlsian Justice theoretical perspectives. The Theoretical Perspectives The Utilitarian Theory of Justice judges the morality of decisions on their consequences. The choice with the most benefit to the greatest number of people is ethically right (Koster 2002). The theory takes two approaches; act utilitarianism where decision-makers must assess the most benefit that can be achieved for the greatest number of people irrespective of whether it interferes with people’s feelings or the law, and rule utilitarianism where fairness is sought while considering the law (Singer 2011). Kantian deontology calls for decision-making that is guided by duty, so that ethics gives rise to good outcomes rather than just the goals. According to Smith & Dubbink (2011), people must stick to their duties and obligations whenever analyzing ethical dilemmas and it suggests rights, often those which embrace fundamental rights to safety and life, and those suggesting freedom of conscience, entitlement to privacy, holding of private property and freedom of conscience. Blackburn & Molinari (2012) explain that in Kantian thought, employees should not be abused in seeking profit, but rather viewed as autonomous agents and treated as such. In the Rights Theory, it is acknowledged that a business entity has to deal with external pressures (Hoffman 1986). Every human being however retains their basic rights, either conventional or natural in the process. Natural rights are moral ones while conventional ones are human products and a reflection of societal values (Singer 2011). Rights are prioritized, protected and considered ethically valid as they have endorsement of the majority (Koster 2002). The state protection, corporate responsibility and access to remedies by victims are the main features (Ruggie 2011). In SHRM, employees are therefore entitled to the outcomes of their labour. Rawl’s Theory of Justice suggests two justice principles that are expected to guarantee a morally acceptable and just society (Prasad 2008). According to Kenny (2004), it first guarantees that every person gets the right to exercise extensive basic liberties that are compatible with other people’s liberties. Second, economic and social positions should be open to everyone and help in attaining everyone’s advantage. There is emphasis on equity so that discrimination is eliminated while acknowledging that there are substantive differences that are not avoidable. Cohen (2010) adds that there is further the belief that the free market system threatens social cooperation and fairness hence justice. Case I: Unionization At lunchtime on April 10, 2015, a group comprising of about 60 hospitality workers and their supporters belonging to a union named United Voice held a loud demonstration near the Kingston Restaurant in South Canberra, protesting poor working conditions and pay in the industry. They demanded that employers should know their obligations, and complained that they were underpaid, apart from which restaurant owners often either paid their penalty rates in part or completely ignored doing so. Wages in the industry had also been pushed down by up to less than half of ideal rates, a feature attributed to presence of many desperate foreigners that the employers had chosen to exploit through squeezed wages. The union also launched Federal Circuit Court proceedings to reclaim $21,000 owed to a Canberra chef, Rainier Storm. They stated that the amount owed by Kingston Restaurant and Café was from accumulated public holiday, weekend and overtime allowances over 18-months (Francis 2015). Case II: Ageism In April 2014, a Brisbane Federal Circuit Court imposed a $30,000 fine on two restaurants along the Gold Coast; Surfer’s Paradise and Broadbeach. This is after they reportedly decided to terminate an employee’s job after his 65th birthday, in spite of having an impressive employment record in the company. The employee had been granted leave, but was told that when he came back he could only work part-time, as company policy did not allow employment of people aged above 65. The Fair Work Ombudsman argued that the move was unlawful and an incident of age-based discrimination. Citing the Commonwealth Age Discrimination Act, there was the argument that it would be unlawful to deny anyone employment or promotion basing on their age, and that some employers assume that an older employee is incapable of keeping up with technological developments, so that perceptions and culture have become increasingly youth-centric (Kenny 2014). Discussion of the Ways the Situations Were Handled The SHRM function is always expected to take up a major role in decision-making, so that it proactively develops the people within the organization so that they can be a basis for competitive advantage (Sheehan et al., 2014). In the unionization case, the hospitality workers felt the need to express their displeasure with their working conditions. They believed that the best way to do this would be to hold a demonstration, which is fair as they are entitled to it by the constitution. Although it was a seemingly breach of the peace, the case was an incident that would be judged in a utilitarian perspective that according to Koster (2002) focuses on intention, to have been justified. Their intention was to call for justice, a feature that is characteristic of any ethical perspective. Going to court so that they could secure compensation for one of their colleagues is also in line with this spirit. According to Colling & Terry (2010), the outcome is beneficial because the process sought is legal, and will therefore show those that are oppressed by quiet that they have recourse in the law. It will also serve as an example to other employers who might be denying workers their rights. In the ageing case, the employee whose case was being handled went to court, seeking justice. This was the right move considering that employee rights are suggested by the constitution. The employee had not shown any indication that he would not be able to continue performing his tasks as before, and luckily according to Jorgensen (2004), in Australia there is a guarantee of the protection from discrimination basing on age. It was a case where Rawlsian justice, human rights and Kantian deontology would be effectively applied and irrespective of which is chosen, there is the seeming existence of basic rights that need to be upheld at all times. The main one is the right not to be dismissed from work in the absence of a just cause. According to Blackburn & Molinari (2012), SHRM would be supposed in such cases to uphold due process and check whether internal policies are in line with universal laws. Analysis and Suggestions Relating to the Unionization Case From a Rights Perspective, labour union presence in the hospitality sector is compulsory due to Australia being a signatory of international conventions, specifically its membership to the International Labour Organization where it has committed itself to the promotion and realization of the right to engage in collective bargaining, in addition to the freedom of association for workers (Levine 2001). In this regard, there is the obligation for SHRM to enhance negotiation with the unions on all employee-related matters, and establishment of adequate whistle-blowing policies that will guarantee the freedom of speech. Richardson (2013) suggests that such will ensure that employees have an adequate avenue for expression of their grievances early enough before it reaches the point of industrial action. A Rawlsian view envisions the SHRM objective of high performance hence requiring job satisfaction that in turn suggests a lot of motivation, job enrichment and compensation measures (Truss et al. 2012). The union in the case assists in ensuring employee representation in decision-making. Unionization however usually demands equal benefits to all workers in same levels, thereby working against the idea of fairly rewarding hard work, which is a SHRM objective. To deal with this, SHRM needs to uphold fairness within the performance management processes and uphold rights to meaningful work through employee development, job enrichment, participation and empowerment. Simons (2011) explains that this is especially because the union can limit flexibility in strategy for instance through specifying the number of work hours and breaks for employees, so that introducing new working standards becomes difficult and requires union permission. The Kantian framework would suggest greater rights to safety and life, in addition to freedom of conscience, entitlement to privacy, and right to fair wage (Blackburn & Molinari 2012). Unionization results in fairer employment systems (Kenny 2004). In seeking these however as occurred in the hospitality case, unions will end up causing an institutionalized workplace conflict. Simons (2011) explains that lack of flexibility in unionized workforces poses a challenge as it impacts on cross-training. For instance, a union will define the worker’s role and this limits the scope of their job, making it difficult to assign them elsewhere in case of need. SHRM will in this regard have to avoid conflict through ensuring that work-life balance, grievance and communication policies are well implemented. Colling & Terry (2010) recommend that it should create a partnership with the union and opening up continuous communication and idea-sharing with it so that eventually there will be benefit for all. In the utilitarian sense, unions assist in ensuring compliance of employers with policies that promote social justice for instance safety and health, in addition to educating members on how to enhance social justice (Richardson 2013). These are all for the benefit of a majority, who are the workers. According to Blackburn & Molinari (2012), workers through unions can call for training programmes that promote fairness in the equality of opportunity. Apart from improvement of employee lives, a good union will boost the fraction of company earnings allocated to wages, thereby positively affecting the fair equality of opportunity and difference principles. Colling & Terry (2010) however observe that unions in the process limit team effectiveness because provided terms can be interruptive if employees choose to unfairly exploit them, for instance where employees take advantage of provisions for sick leave to exhaust all the days allowed through pretence. SHRM should ensure proper management of sick leave, disciplinary measures, and promotion of employee quality of life, as a way of ensuring their right to safe working conditions. There should be acceptance of the positive change being sought by unions, as this will help in upholding its members’ rights to meaningful work, due process and fair wages. In the Rawlsian perspective, theory suggests that unions will help in pursuing objectives of difference, equality and opportunity (Prasad 2008). First, they are able to prevent exploitative and abusive relationships between the employer and employees basing on the inequality in their bargaining power (Levine 2001). In Rawlsian justice, this will lead to important gains such as increasing pay for vulnerable workers, such as the ageing group of employees, leading to advancement of the difference principle (Rawls 1999). A union is also able to help in shielding its members from abuse of power which could threaten their basic liberties, for example when the employer decides to have all his employees attend a given church (Richardson 2013). Analysis and Suggestions Relating to the Ageism Case There is a continuing rise in the number of older people in Australian workplaces (Department of Commerce 2013). A Rawlsian approach would acknowledge the challenge of negative attitudes on the part of employers, possibly limiting their participation in the labour force (Simons 2011). This poses ethical challenges because a segment of the workforce stands to be marginalized by SHRM (Rand & Jackson 2010). Cappelli & Novelli (2010) recommend that to deal with this, SHRM could pursue job analysis and an examination of the underlying motivations within each generational group, and then create a workforce forecast. It can then decide on adjustments necessary, and especially seek training of supervisors and managers on generational issues, so that they can become fair arbiters in age-related issues. According to Rand & Jackson (2010), they should also be made aware of the special needs of older workers and HR policies can be matched with them then regularly reviewed to ensure alignment with the needs of all employees without exclusion. In the utilitarian sense, the right to equal employment should be stretched to include greater participation (Paauwe et al. 2013). People’s ways can be changed through proper leadership, where a leader should be motivated by mutual benefit and universal love, as this is the way to achieve harmony and peace in society (Boss 2011). SHRM should be creative in its performance management to involve all generations and provide space for lateral movement and flexibility as older workers get more satisfaction from diagonal or lateral movements into different functions or positions. According to Leibold & Voelpel (2006), job sharing, flexible schedules, leave of absence and educational sabbaticals will help to accommodate the special needs of the older workers and facilitate their retention. Most importantly, the company should eliminate the policy on age limit for workers and replace it with a definition of ability or incapacitation. Conclusion Contemporary SHRM seeks to ensure better performance of employees, and this may give rise to ethical issues relating to their exploitation. The utilitarian, Kantian, Rights and Rawlsian approaches offer a good insight into the entitlement of workers to certain rights. Unionization and ageism are considerable ethical issues in SHRM as it has to establish ways of ensuring that the freedom of association and right to good working conditions are upheld on one hand, and the entitlement of older workers and fair treatment free of discrimination are upheld on the other. The utilitarian and Rawlsian perspectives call for justice in treatment of employees in both instances while the utilitarian and Kantian approaches define the kind of objectives that should be sought in ensuring that all employees get the fair treatment that they deserve. Bibliography Blackburn, D and Molinari, E, (eds), (2012), The Philosophy of Trade Union Rights, International Union Rights, Vol. 18 (4): 2-28 Boss, J, (2011), Ethics for life, 5th edition, New York: McGraw Hill. Cohen, M, (2010), The Narrow Application of Rawls in Business Ethics: A Political Conception of Both Stakeholder Theory and the Morality of Markets, Journal of Business Ethics. 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Vol. 21 (2): pp. 205-231 Truss, C, Mankin, D and Kelliher, C, (2012), Strategic Human Resource Management, Oxford: Oxford University Press Read More